Sodastream International Ltd. (NASDAQ: SODA) reported its second quarter financial results and topped estimates, as well as raising its fiscal guidance. The better than expected quarter shares trading at 22.5% higher shortly after the opening bell on Wednesday.
For the second quarter, Sodastream reported revenue of USD 171.5 Million, growing 31.3% year over year and topping estimates of USD 149.0 Million. The Company reported an EPS of USD 1.14, increasing 77.9% year over year and reporting well above estimates of USD 73 cents.
Sodastream saw net income increase by 81.7% to USD 26.1 Million, attributable to the strong growth across all of its product segments. Sparkling water maker kits product segment reported revenue of USD 64.9 Million, increasing 38.3% year over year, while Consumables reported revenue of USD 102.8 Million, increasing 25.8% year over year.
Western Europe saw the strongest sales growth, as well as contributing the most to the quarterly revenue, driven by Germany and France. The region drove in revenue of USD 108.4 Million, increasing 26.8% year over year.
"We are extremely pleased to be reporting the most successful quarter in our Company's history," Chief Executive Officer of SodaStream Daniel Birnbaum said in the earnings transcript. “These results underscore the progress we are making towards our primary strategic objectives of expanding household penetration and increasing usage of our home carbonation system.
For 2018, Sodastream forecasts revenue to increased by 23%, increased from its previous guidance of 15%. Operating income is expected to increase by 44%, higher than the Company’s previous forecast of 15%, while diluted EPS is expected to grow by 31%, higher than the previous forecast of 8%.
“I believe we are now positioned better than ever to drive continued growth and increased shareholder value over the long-term, especially as SodaStream is a great alternative to single-use plastic bottles which are being revealed as a hazard not only to the environment but also to human health," added Bimbaum.